"Don't count out the reemerging search and artificial intelligence (AI) giant. Many investors were shocked when Nvidia became the first company to achieve a $4 trillion market cap. The competition for the world's largest market cap was long a contest between Apple and Microsoft, so to see Nvidia emerge out of nowhere likely came as a surprise. Now, the question is, which company is the next to achieve a $4 trillion market cap?"
"Alphabet stock had long been smaller than many of its " Magnificent Seven" peers, as the rise of ChatGPT weighed on the stock. When GPT-4 came out in 2023, investors soured on Google Search, and its market share had fallen below 90% for the first time in decades. At that point, not only did ChatGPT offer more thorough and concise results, but it bypassed the advertising ecosystem that had long served as the primary source of the Google parent's revenue."
Nvidia became the first company to reach a $4 trillion market cap, disrupting the longtime Apple–Microsoft rivalry. Attention now turns to which company will be next to hit $4 trillion, with Alphabet currently at about $3.7 trillion and ahead of Microsoft. Alphabet's market value fell below $2 trillion as AI newcomers like ChatGPT pressured Google Search and ad-based revenue. Google released Gemini, but it initially did not outshine competitors. Alphabet has been diversifying revenue toward Google Cloud and reducing ad dependence, and recent market gains reflect renewed investor interest in its AI and cloud prospects.
Read at The Motley Fool
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